Wall Street Games Out a ‘No Landing’ in Era of Stock Turbulence
- Equities swerve as hot inflation reading confounds strategists
- Markets pricing more rate hikes along with resilient economy
A trader works on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Renewed pressure on the Federal Reserve to intensify its inflation battle in the grip of a still-resilient economy is forcing Wall Street pros to rethink the stock-trading landscape.
After a worrisome report on consumer prices landed Tuesday, bond investors amped up expectations that interest rates will move past 5% and stay there. The two-year Treasury yield surged anew, with bets on rate cuts later this year all but vanishing — a turnaround from dovish wagers placed just weeks ago.